Target Group

• Anchors with External Credit  Minimum Rating  of Investment Grade
• Only to the Dealers recommended by the Anchor.
• Focus to be on high quality accounts at Anchor level who recommend the dealers, which have good track record with the anchor, thereby improving the quality of accounts at the initial stage. Anchor- Dealer Relationship to be minimum two years.
• For New Dealer (new in business/new to Anchor with relationship vintage of less than two years), Anchor external rating must be A and above (including A-).

Target Constituents

• Anchor: All Constituents
• Dealer: Reputed Dealers, Distributors: Individual/ Proprietary/ Partnership /LLP /Company

Limit/ Exposure

Limit is given to the approved and authorized dealer of the Anchor and overall limit of the dealers should not more than Anchor Limit approved under Dealer Finance Scheme.

Nature of Facility

Invoice/ Indent/ Bills Discounting

Loan Amount

Minimum: Above Rs. 20.00 Lakhs per dealer

Maximum up to Rs. 20.00 Crores per dealer

Need Based assessed amount to be considered within the stipulated range.

Period of Facility

12 months and to be annually renewed thereafter

Purpose

1. Financing the invoice raised by the Anchor on the Dealer/ Distributor

2. Financing the indent raised by Dealers/ Distributers on Anchor/ Corporate

Tenure of Invoice Financing

1. Maximum up to 120 days

Prime Security

Hypothecation of entire stocks, receivables and underlying goods financed arising out of indent/ invoices financed.

Collateral Security

• Up to Rs. 2.00 Cr Nil Collateral Security
• Above Rs. 2.00 Cr and up to Rs. 5.00 cr: Minimum 20% collateral security in form of immovable / liquid security or combination of all type of securities of the Loan amount or CGTMSE coverage in full/hybrid model.
• Above Rs. 5.00 Cr: Minimum 25% collateral security in form of immovable / liquid security or combination of all type of securities of the Loan amount or CGTMSE coverage in full/hybrid model.
• 5 undated signed cheques of the operative account of dealer / E-NACH mandate

Guarantee

Personal guarantee of Individual/ promoters/ partners/ directors as per sanction terms.

Limit Set Up/ Assessment

Need Based Financing considering of

1. Average monthly GST Sales or projected monthly sales (with Anchor) x Credit period; OR,

2. Limit recommended by the Anchor. Whichever is lower

Processing Charge/ Upfront Fee

0.25% of the loan amount with maximum charges of Rs 30,000/-+GST plus other applicable charges (if any).